The DSL (digital subscriber line) provider posted a loss of $91,000, or
breakeven on a per-share basis, on sales of $47 million. But it also warned
that its first-quarter sales will plummet to between $8 million and $10
million.

First Call's consensus expected Copper Mountain to break even in the quarter.

Earlier in the quarter, the Palo Alto, Calif.-based company warned investors it would miss
its already reduced sales estimates,
citing weakness in the competitive local exchange carrier (CLEC) customer
base.

The company had previously warned that it would post sales of around $60
million in
the quarter before lowering that forecast to between $46
million and $49 million.

Copper Mountain shares closed up 13 cents to $7.81 ahead of the earnings
report before
falling to $6.52 in after-hours trading.

The $47 million in sales represents a 6 percent improvement from the
year-ago quarter when it earned
$6.7 million, or 12 cents a share, on sales of $44.6 million.

In the quarter, it posted a net loss of $34.4 million, or 66 cents a share,
compared with a net profit of $6.3
million, or 11 cents a share, in the same period last year.

For the fiscal year, it pocketed $41.3 million, or 71 cents a share, on
sales of $281.6 million compared with a
profit of $15.2 million, or 29 cents a share, on sales of $112.7 million.

Chief Executive Rick Gilbert told analysts the company's "challenges will
increase in 2001," adding
that it expects a significant sequential decline in total sales.

Company executives told analysts to expect sales between $8 million to $10
million in the first quarter.

First Call consensus was expecting sales of $50.9 million in the first
quarter.

Frank McEvoy, an analyst at USB Piper Jaffray, said
that $8 million figure would translate into a loss of
around 26 cents a share in the quarter, well below the
break-even mark analysts were expecting.

"This is a reflection of what's going on in the data CLEC
space," he said. "They need to try to diversify their
customer base. It's not easy to do, but Copper
Mountain has to get into the ILEC space if it wants to
turn things around."

Copper Mountain executives didn't give any guidance
for sales or earnings for the rest of 2001 during a
conference call with analysts.

"Unfortunately, because of these rapidly changing
conditions, we have very limited visibility on our
customers' future buying patterns at this time," Gilbert
said.

Copper Mountain also took a $35 million charge in the
quarter for inventory write-downs, $28.6 million of which
is related to future inventory purchase commitments.

Last quarter, it met analysts' estimates when it posted
a profit of $15.8 million, or 27 cents a share, on sales of
$93.5 million.

The stock moved as high as $125.69 in July before
collapsing to a low of $4 a share in December.